Finding 8417 (2023-001)

Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Assistance Listing Numbers: 14.871 Noncompliance – N. Special Tests and Provisions - Housing Quality Standards Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control for Special Tests and Provisions Criteria: Housing Quality Standards Inspections. The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets the Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Condition: Based upon inspection of the Authority’s files and on discussion with management, there was a unit that was not reinspected within the biennial reinspection period of two (2) years. Context: There are approximately 353 Section 8 Housing Choice Vouchers units. Of a sample size of fifteen (15) files, one (1) biennial inspection was not completed in a timely manner. Our sample size is statistically valid. Known Questioned Costs: $934 Cause: The Authority's contract administrator for the Section 8 Housing Choice Vouchers Program was unable to complete the inspection in a timely basis due to lack of manpower. Effect: The Section 8 Housing Choice Vouchers Program is in non-compliance with the special tests and provisions type of compliance related to HQS inspections. Recommendation: We recommend the Authority design and implement a corrective action plan that will assure compliance with the Uniform Guidance and the compliance supplement. Authority Response: The Authority has an interlocal agreement with a neighboring housing authority for administration of the Section 8 Housing Choice Vouchers Program. The authority understands the reason for the finding, in that the inspection was one month late. Previously a quality control sample of Section 8 Housing Choice Voucher files administered by the neighboring Housing Authority had been reviewed each month. This was with respect to the income calculation, specifically. Housing Kitsap will add a verification of inspection requirements to this process.